Originally Posted by
pokin
For clarification purposes:
Traditional 401ks have RMDs.
401A contributions that are then converted to Roth IRAs do not have RMDs.
Do Roth 401k contributions have RMDs?
Thanks
Originally Posted by
mispoken
They do not. Easy way to think of it, if you pay taxes on it now (Anything roth) you won’t have RMDs. If you defer taxes on it now (traditional), you’ll have RMDs because Uncle Sam wants to get his dirty mitts on it eventually, therefore they mandate distributions. No matter what, Uncle Sam will always get his share the goal is to minimize that and thus the back and fourth on traditional vs Roth that pops up on here every few months :-)
Originally Posted by
pokin
Thanks for the response. I think I'll be changing mine to a roth 401k and have my wife keep hers as a traditional. This is a great topic!!!
straight from IRS website:
What types of retirement plans require minimum distributions?
The RMD rules apply to all employer sponsored retirement plans, including
profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs.
The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.
https://www.irs.gov/retirement-plans...-distributions